Each Real Estate Investor must be surrounded by a “Dream Team” to be successful. Lone wolf investors rarely make a living in the long run because there are simply too many steps in the investment process to juggle that require too many skills and disparate skill levels. Most likely, the successful investor possesses a combination of skills that allows him to focus on only a few aspects of the business:
• Vision and goal setting for the company
• Supervision of the entire operation
• Keep the marketing plan on track
• Network with agents, other investors and our team
• Find private money
• Cash checks
Otherwise, focus on finding professionals and support people for all other aspects of your real estate investment business. Look for people with the best combination of professional experience, contacts, knowledge, resources and temperament that complement yours.
Some of the key team members include:
1. Real Estate Agents who specialize in working with Investors, and those who have experience with Short Sales and other distressed properties. These Agents do not need to be experts in negotiating with Lenders, in fact, those who understand that this is not the best use of their time will better serve your needs. Find Agents with a good understanding of the market, a great relationship with Sellers, and the ability to find Buyers quickly.
2. Real Estate Lawyer. Make sure your attorney is well-versed in business and contract law and understands the types of paperwork involved in a typical investor deal: short sale disclosures, option contracts and rental and lease option agreements, land trusts , etc. Your attorney should be able to establish the entity for him so that he can operate with limited personal liability.
3. Title or escrow agent. In some states, title company functions will be performed through a Real Estate Attorney. In most states, you will need to find a title company that understands and accepts simultaneous closings. Make sure the title insurance offered insures you as the owner, not just the lender. See your homeowner’s title insurance rates for $1,000 of purchase price. Find out if they will perform link searches for you for the property you are considering buying but do not yet have a purchase and sale agreement for.
4. Counter. You may need two people: a bookkeeper to record all your income and expenses in QuickBooks or an Excel spreadsheet, and a certified public accountant to complete your taxes. The bookkeeper may be a virtual assistant who doesn’t necessarily live in your area, while your tax professional will be an accountant in your area. The bookkeeper must be knowledgeable in producing income and expense records on a monthly basis and other business reports. Your accountant should be educated on all tax rules and forms related to real estate investment and business accounting. They should be able to advise you on how to set up your record keeping for accurate and efficient tax preparation.